<h1>RBI Enhances India's Debt Markets: Strengthens Inflation Control, Innovates Products, and Reforms Lending Practices with SARFAESI Act Changes.</h1> The central bank's focus on strengthening India's debt markets involves ensuring low and stable inflation, encouraging product innovation, and addressing the reluctance of banks to lend. Recent reforms, such as changes to the SARFAESI Act and the introduction of the Bankruptcy Code, aim to improve debt recovery and reduce credit spreads. The RBI is cautiously liberalizing fixed income and derivatives markets to enhance growth and stability, while managing risks associated with speculation and innovation. Efforts include increasing market participation, supporting financial innovation, and encouraging foreign investment to deepen market liquidity and resilience.